Many states mandate workers’ comp coverage for each business, with some exceptions depending on the size or scope of an organization. Failing to offer or carry adequate coverage can result in fees or lawsuits, and fortunately, there is a number of insurance policies that can address the unique situations of many businesses that might not have black and white workers’ comp requirements. Navigating which employees are eligible can be difficult in situations of temp or contract labor, but turning to an employer of record can help direct the responsibility for administering or tracking benefits in these employment situations.
The Benefits of Using an EOR
The team at Monarch Partners Group advises that EOR workers comp can supply the mandated accident or injury benefits required by state laws, even when the temp or contract employee is working in a different state than which they claim permanent residence. Using a specialty benefits administrator like an EOR keeps your independent recruiting or company compliant with regulations, and assumes the legal responsibility for the wages of the employee. The EOR will also:
- Withholds applicable state and federal taxes
- Supply the employee with a W-2 at the end of the year
Working with an EOR can give your staffing company an edge but providing necessary benefits without overextending your staff or needing to hire additional personnel to keep track of regulatory changes.